31 March 2021
Seeing Machines Limited
(“Seeing Machines” or the "Company)
Half year results and financial report
Seeing Machines Limited (AIM: SEE), the advanced computer vision technology company that designs AI-powered operator monitoring systems to improve transport safety, today publishes its unaudited results and financial report for the six months to 31 December 2020 (“H1 2021”).
Financial Highlights:
· Operational revenue of A$18.1m (H1 2020: A$15.8m) reflecting comparative growth of 15% on previous period. Underlying revenue growth using constant currencies is 19% year on year (exchange rate as at 1 July 2020).
o Aftermarket (Fleet and Off-Road) revenue grew by 17% to A$15m (H1 2020: A$12.9m)
o Annualised Recurring Revenues including royalties of A$15.5m, representing growth of 17.4% (H1 2020: A$13.2m)
o OEM (Automotive and Aviation) revenue of A$3.1m (H1 2020: A$2.97m), representing a 5% increase on previous period
· Net loss of A$16.8m, representing an improvement of 33% compared with the same period last year (H1 2020: A$24.9m)
· Cash at 31 December 2020 of A$52.3m (31 December 2019: A$47.4m)
· Range of cost-saving initiatives, introduced through height of COVID-19 pandemic, has resulted in improved cost base management aimed at contributing to better operational performance and improved cash balance.
OEM Highlights:
· Driver Monitoring System (DMS) technology now firmly established as fundamental to improved safety on roads, underpinned by regulation and standards, as well as to the increasingly smart vehicle interior for carmakers;
· The number of active automotive RFQs (Requests For Quotes) requesting DMS has increased accordingly across major automotive markets;
· Cadillac Escalade by General Motors, is now available on roads with Driver Attention System featuring Seeing Machines technology, bringing total current production vehicles to five, aross three OEM programs;
· Automotive three-pillar embedded product strategy launched to support carmakers with a range of integration options for DMS;
· Seeing Machines now formally working with a range of semi-conductor companies including Qualcomm Technologies and Omnivision Technologies to extend the deliver of its DMS.
Aftermarket Highlights:
· Max Verberne appointed to lead the Aftermarket business, bringing a wealth of industry understanding having led telematics businesses for over ten years including with Radius Telematics Australia and Ctrack by Inseego, and has previously managed divisions and channels for Siemens across Australia and New Zealand;
· Business continues to grow despite challenging global conditions as Guardian hardware sales remain consistent with ongoing momentum around safety technology in commercial transport and logistics, and installation rates in Southern Hemisphere, accelerate;
· Guardian connections as at 31 December 2020 of 26,597 represents growth in installed base of over 3,000 units in the six months prior, contributing to unrivalled set of naturalistic driving data which now exceeds 6.3 billion kilometres and underpins ongoing development of the Company’s DMS platform technology.
Investment Highlights:
· Investment by leading US based insititutional investors has strengthened Seeing Machines’ balance sheet and positioned the Company to initiate a range of strategies to support incremental growth objectives across its key transport markets.
Outlook:
Seeing Machines continues to trade in line with expectations for FY2021.
Guardian connections are expected to accelerate as COVID-19 challenges subside with the global vaccine rollout and H2 2021 is expected to see an incremental growth in Aftermarket related revenue.
As the Company expects to be in production with existing OEM customers on more than 30 distinct car models within the next two calendar years, the current makeup of Automotive revenue is set to change from NRE (Non-Recurring Revenue) to signficantly higher margin based royalty revenue.
Paul McGlone, CEO of Seeing Machines commented: "The first half of FY2021 has been pleasing and we are buoyed by the progress in Fleet, as well as the significant increase in RFQ activity in Automotive across key markets as carmakers ready themselves for mounting safety standards and technology advances inside the cabin, all supported by camera-based DMS. We are now in production on five car models, working across three OEMs, and that is set to ramp up signficantly over the coming two years.
“Further, I’m delighted with the interest we are seeing from both UK and US based institutional investors, as DMS becomes more and more relevant across all key Seeing Machines transport sectors. We are now positioned to look beyond the near term and leverage our strengthened balance sheet to grow company opportunities across core markets.”
Enquiries:
Seeing Machines Limited
+61 2 6103 4700
Paul McGlone - CEO
Sophie Nicoll - Corporate Communications
.